Ad Spend Predicted to Rise in 2012

According to ZenithOptimedia's latest report, the global advertising market is performing well, with advertisers in a better position than they were at the start of the downturn in 2008.

Analysts found that marketers have built up large cash reserves since 2008, and with interest rates currently being poor, companies are more likely to invest in advertising "in competition for marker share, and as a way of stimulating extra consumption."

Despite major Eurozone economic problems, global ad expenditure has been predicted to grow 4.7% in 2012, which is a 3.5% increase compared to that in 2011. Furthermore, expenditure is expected to rise 5.2% in 2013 and 5.8% in 2014.

The main contributing factors to this optimistic view are the upcoming Olympics, the European Football Championship, the US Presidential and other elections plus Japan's emergence from the earthquake they suffered earlier this year.

Nevertheless, despite a boost from the London 2012 Olympics, Western Europe is expected to see a smaller growth of 2% in 2012. This forecast also assumes that GDP will continue to slow in the Eurozone.

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